According to the Economic Well-Being of U.S. Households in 2022 report published in May 2023 by the Federal Reserve System, only three-quarters of non-retirees had at least some retirement savings.
Numerous Americans aspire to retire one day, but the years leading up to it require dedication and cautious planning. However, only 31% of those with retirement savings believed they were on course, down from 40% in 2021 and 36% in 2018.
Low Retirement Savings
Savings for retirement and perceived preparedness varied across demographic categories, according to the report. Younger adults were less likely than elder adults to have retirement savings and to perceive their savings as on track. Black and Hispanic non-retirees were less likely to have savings and perceive them as on track than White and Asian Americans. These patterns were identical to those of prior years.
In addition, savers with a disability were less likely to have retirement savings and a positive outlook on their savings. 47% of non-retirees with a disability had savings for retirement, and 13% considered their savings to be on track.
The Hill reported that according to the Social Security Administration, a new retiree at age 65 can expect to live an additional 20 years on average. Without retirement reserves, the majority of retirees depend on Social Security.
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Average Retirement Accounts
However, the average monthly payment is approximately $1,800, whereas the average monthly expenditure of a household headed by someone 65 or older exceeds $4,000.
The Hill cited a Fidelity analysis estimating that the average retirement account’s value decreased by one-fifth in 2022, falling from $135,600 to $104,000.
Courtney Alev, a consumer financial advocate at Credit Karma, told The Hill that the past year had a number of negative aspects. It demonstrates why it is essential for everyone, regardless of age, to have a diversified portfolio.
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